3 Things 7-20-26

 Thing One

Looking Out For Those Who May look Out For You In The End 

Think about it - you've done a lot of life planning and preparation for your future and those you care about. You've worked hard, saved, invested, bought insurance, planned for retirement, and probably already have a Will. But what about planning and sharing your health and medical wishes with your family - do your loved ones know what they are? If not, you may be putting them in the very unwelcome position of having to make critical and life-sustaining treatment decisions on your behalf. The fact is, by law, that's exactly what they will be required to do.

As uncomfortable as the subject may be, each one of us is susceptible to life-threatening conditions every day. Even though it's impossible to plan for every incident, having your medical and health care wishes established in a legal document can be very comforting for both you and those who care about you.  That’s where Advance Directives come in.

What Are They? 

Advance Directives are legal documents that are better known as either a Living Will or a Power of Attorney for Health Care. As a competent adult, you have the right to give consent for all your health care decisions. However, if for some reason you are physically unable to give consent for treatments or procedures, these documents will provide direction to your family and the health professionals who care for you.

The advances of modern technology and the human body's ability to sustain itself have created many new liabilities and difficult decisions for health care professionals. That's why it has become increasingly important for you to take a proactive role in the planning of your future medical treatment.

Living Will

In the event of a terminal health condition, this important document will give your health care professionals instructions about the type of medical treatments you wish to have. A Living Will is only acted upon when your physician, along with two others, agree that you will not regain consciousness or an acceptable state of health.

In addition, you have the option to name a trusted relative or friend as a Power of Attorney who, in these circumstances, is authorized to make health care decisions on your behalf. 

Providing your family and physicians with an expression of your final health care desires will comfort your loved ones in a situation that will already be difficult and emotional.

Power of Attorney for Health Care

In this document, you will designate someone to make decisions about your medical care in the event that your medical condition leaves you unable to communicate your wishes. The person you name will be authorized to speak for you, not only when you are in a terminal condition, but any time a health condition occurs where it is determined that you are unable to make your own decisions.

You can also include instructions that establish the types of medical treatment you prefer, and under what circumstances you would like these decisions made.

If you’ve decided to get and Advance Directive you should:

• Initiate discussions with close family members, your physician(s), and the person you intend to name as your Power of Attorney for Health Care. This will help you clarify your wishes, and at the same time provide those close to you with important information for future medical decisions. 

• Evaluate your health condition and make an effort to determine the possibilities of medical treatment you may need in the future. Use the guidelines you develop as a basis for your documentation. 

• Complete and sign the document you have created, adding or modifying any wording to best describe your wishes. It is extremely important to follow and witnessing instructions that are on the form accurately. Most states require two "disinterested" witnesses. Be sure to cover your bases.

All of these documents can be created with DIY tools online but please be aware that amily conflicts, special circumstances or specific legal concerns might make call for more caution and advice. In those cases, you may want to consult an experienced attorney.

Thing Two  

One of the Best Gifts You Can Leave Your Family Isn't Money

When people hear the words revocable living trust, they often picture millionaires with multiple homes, yachts, and complicated estates.

The truth is, some of the people who benefit the most from a trust are ordinary retirees. If you own a home, have some retirement savings, maybe a brokerage account, and want to make things easier on your spouse or children one day, a revocable living trust is worth serious consideration. In fact, when clients ask me what estate planning tool provides the biggest "bang for the buck," a revocable living trust is almost always near the top of the list.

The biggest reason is simple: it can help your family avoid probate.

Probate is the legal process of settling an estate after someone passes away. Even when everyone gets along and there's no dispute, probate still takes time. Depending on the circumstances, it can take months before assets are fully transferred. There may be attorney's fees, court costs, paperwork, and plenty of frustration at a time when your family is already dealing with enough.

A properly prepared and funded living trust can often allow your successor trustee—someone you chose in advance—to step in immediately and begin handling your affairs without waiting for court approval.

Think about that for a moment. Instead of your children trying to figure out who needs permission from a judge to pay bills, manage investments, or sell your house, you've already given someone the authority to take care of those things.

That's a tremendous gift to leave behind.

Another benefit many people don't realize is privacy.

When someone dies with only a will, that will generally becomes part of the public probate record. A trust, on the other hand, typically remains private. Your financial affairs, your assets, and who receives them generally don't become public information.

The trust can also help while you're still alive. None of us likes to think about dementia, strokes, or serious illness, but those situations happen every day. If you become unable to manage your own finances, the person you've named as successor trustee can simply step in and continue paying bills, managing investments, handling your property, and making sure everything continues to run smoothly.

Without a trust, your family may have to ask a court to appoint someone to manage your affairs. That process can be expensive, time-consuming, and emotionally draining.

Now, let's clear up one of the biggest misconceptions. A revocable living trust is not a tax shelter and setting up the trust isn't about saving on taxes. You don't save income taxes simply because you have one. You still file your tax return the same way you always have. You generally use your own Social Security number, and the assets remain yours while you're alive. It's about saving time, reducing stress, protecting privacy, and making life easier for the people you love. Of course, there's one important catch. Simply signing the trust documents isn't enough. Your home, brokerage account, bank accounts, and other appropriate assets generally need to be transferred into the trust. Attorneys call this "funding the trust." Unfortunately, many people spend thousands of dollars creating a trust and then never move their assets into it, which defeats much of the purpose.

So what does all of this cost? For many retirees, a complete estate planning package that includes a revocable living trust, a pour-over will, financial power of attorney, healthcare power of attorney, living will, and related documents typically runs somewhere between $2,000 and $5,000 for a married couple. A single individual often pays between $1,500 and $3,000, while more complicated estates may cost more.

That may sound like a lot of money until you compare it with the legal fees, delays, and headaches that probate can create for your family. In many cases, the trust pays for itself simply by making the administration of the estate faster and less burdensome.

Now, does everyone need one? No. If your estate is very small or most of your assets already pass directly to beneficiaries through retirement accounts, life insurance, or transfer-on-death designations, a trust may not provide enough additional benefit to justify the expense.

But for many retirees who own a home, have accumulated investments over a lifetime, or simply want to leave their affairs organized, a revocable living trust can be one of the wisest investments they'll ever make.

We spend decades working to build financial security for our families.

A good estate plan helps make sure that all of that hard work isn't followed by unnecessary court proceedings, delays, confusion, and expense.

Thing Three

Just A Thought  

"Nearly all men can stand adversity, but if you want to test a man's character, give him power." — Abraham Lincoln